Legislature(1993 - 1994)
03/09/1993 09:06 AM Senate CRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CHAIRMAN RANDY PHILLIPS brought SB 88 (CAPITAL PROJECT GRANTS) before the committee. He directed attention to a proposed amendment that limits administrative costs for capital matching projects to 10 percent. SENATOR TAYLOR moved the adoption of the following amendment AMENDMENT #1 Page 5, after line 7, insert a new bill section to read: "*Sec. 8. AS 37.05.321 is amended by adding a new subsection to read: (b) No more than 10 percent of the total amount of money spent on a capital project funded in whole or in part with money granted under AS 37.05.315 - 37.05.317 may be used for administrative expenses." Renumber the following bill sections accordingly. Page 7, line 4, after "state." insert: "No more than 10 percent of the total amount of money spent on a capital project funded in whole or in part with money appropriated under this subsection may be used for administrative expenses." Page 9, line 22, after "state." insert: "No more than 10 percent of the total amount of money spent on a capital project funded in whole or in part with money appropriated under this subsection may be used for administrative expenses." Page 13, line 10: Delete "sec. 8" and insert "sec. 9" Page 13, line 13: Delete "sec. 8" and insert "sec. 9" Page 13, line 18: Delete "sec. 11" and insert "sec. 12" Hearing no objection to the amendment, the Chairman stated amendment #1 had been adopted and would be incorporated into a C&RA committee substitute. Number 180 CHAIRMAN RANDY PHILLIPS directed attention to a proposed amendment #2, which was suggested by Mayor Fink of the Municipality of Anchorage. It would change the match requirement to a 75/25 match as opposed to the 75/30 match requirement in SB 88. SENATOR TAYLOR said he was not satisfied that the percentages in the bill are fair and equitable. He said he appreciates the simplicity of the formula because it applies readily across the board based merely on population, but he still thinks that there should be something within the formula that adjusts for the wealth factor. Number 242 SHELBY STASTNY, Director, Office of Management & Budget, Office of the Governor, said that as the legislation was drafted the previous year, it had a wealth factor based on DCRA's assessed valuations. The formula was lengthy, and strictly out of a matter of simplicity, the bill was drafted in its current form. He said he agreed that there are circumstances where the formula is not equitable for some of the smaller communities, but the dollars involved are usually fairly small because the amounts allocated in SB 88 are based strictly on population. He added that his office would be willing to work with the committee or Senator Taylor on another formula that would be more equitable. SENATOR TAYLOR said he didn't want to hold the legislation up and that he would work with the Finance Committee on his concern. CHAIRMAN RANDY PHILLIPS asked Mr. Stastny for his comments on amendment #2. SHELBY STASTNY responded that Governor feels strongly that the 50/50 match down the road is where we ought to be headed and prefers the 75/30 match. There being no motion on amendment #2, the Chairman asked for the pleasure of the committee. Number 290 SENATOR TAYLOR moved that CSSB 88 (CRA) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.
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